How much did it cost Tom to buy the stock?

Question

anonymous · Answer

Tom bought 750 shares of a company’s stock for $11.06/share. He pays a broker a commission of $12 to buy and sell stock. After one year, Tom sold all his shares, when they were worth $10.24/share.

tkhunny · Answer

How much did it cost Tom to buy the stock?

750 * $11.06 + $12 = $8,295.00 + $12.00 = $8,307.00

If the question really means, "How much worse off is he after the entire trading episode?", then that's a different story.

anonymous · Answer

What was Tom’s net gain or loss?

tkhunny · Answer

That's the real question.  You tell me.  All the parts are there.

anonymous · Answer

so then he lost $627?

tkhunny · Answer

Sell: 750 * $10.24 - $12.00 = $7,680.00 - $12.00 = $7,668.00

$8,307.00 Out
$7,668.00 Back
Loss: $639.00

Do you see where you went wrong?

anonymous · Answer

Yeah I do .

tkhunny · Answer

Those Broker Fees ding you EVERY time!

anonymous · Answer

how do i find the annual rate of return ?

tkhunny · Answer

Somewhere along the way, you do this: $\dfrac{Stock\;Value\;at\;End}{Stock\;Value\;at\;Beginning}$